BILL ANALYSIS Ó
SENATE COMMITTEE ON HUMAN SERVICES
Senator McGuire, Chair
2015 - 2016 Regular
Bill No: AB 702
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|Author: |Maienschein |
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|Version: |February 25, 2015 |Hearing | June 23, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant|Mareva Brown |
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Subject: CalWORKs: temporary shelter assistance
SUMMARY
This bill would eliminate the requirement that CalWORKs
temporary shelter assistance be provided in a consecutive block
of days, and instead would allow the existing 16-day lifetime
limit to be used in any combination of time that a recipient is
both homeless and receiving CalWORKs aid, as specified.
ABSTRACT
Existing law:
1) Establishes in Federal law the Temporary Assistance to
Needy Families (TANF) program to provide assistance to
needy families so that children may be cared for in their
own homes or in the homes of relatives, and to end the
dependence on government benefits by promoting job
preparation, work and marriage. (45 CFR 260.2).
2) Establishes the California Work Opportunity and
Responsibility to Kids (CalWORKs) Act, to provide cash
benefits, employment training and other supports to
low-income families through a combination of state and
county funds and federal funds through the TANF block
grant. (WIC 11200, et seq)
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3) Defines homelessness within the CalWORKs program as:
a. When a family lacks a fixed and regular
nighttime residence
b. The family has a primary nighttime residence
that is a supervised publicly or privately operated
shelter designed to provide temporary living
accommodations;
c. The family is residing in a public or private
place not designed for, or ordinarily used as, a
regular sleeping accommodation for human beings.
d. The family has received a notice to pay rent
or quit. In that instance, the family must demonstrate
that the eviction is the result of a verified
financial hardship as a result of extraordinary
circumstances beyond their control, and not due to
lease or rental violations, and that the family is
experiencing a financial crisis that could result in
homelessness without preventative assistance. (WIC
11450 (f) (2))
4) Provides that additional cash benefits may be granted to
individuals for recurring and nonrecurring special needs,
as specified, including homeless assistance for families
that are homeless and seeking shelter, as defined. (WIC
11450 (e) and (f))
5) Limits lifetime eligibility to one period of up to 16
consecutive calendar days of temporary assistance and one
payment of permanent assistance, unless families qualify
for an exception, as specified. (WIC 11450 (f)(2)(E))
6) Prohibits any family from eligibility for further
homeless assistance if that family includes a parent or
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nonparent caretaker relative living in the home who has
previously received temporary or permanent homeless
assistance at any time on behalf of an eligible child. (WIC
11450 (f)(2)(E))
7) Requires that any person who applies for homeless
assistance benefits shall be informed that the temporary
shelter benefit of up to 16 consecutive days is available
only once in a lifetime, with certain exceptions, and that
a break in the consecutive use of the benefit constitutes
permanent exhaustion of the temporary benefit. (WIC 11450
(f)(2)(E))
8) Establishes exceptions to the 16-day limit when
homelessness is a direct result of a state or federally
declared natural disaster, or domestic violence by a
spouse, partner, or roommate; physical or mental illness
that is medically verified that shall not include a
diagnosis of alcoholism, drug addiction, or psychological
stress; or, the uninhabitability of the former residence
caused by sudden and unusual circumstances beyond the
control of the family including natural catastrophe, fire,
or condemnation, as defined. Limits homeless assistance
payments based on these specific circumstances to not more
often than once in any 12-month period. If domestic
violence contributes to homelessness, as defined, limits
homeless assistance payments to two periods of not more
than 16 consecutive calendar days of temporary assistance
and two payments of permanent assistance. (WIC 11450
(f)(2)(E)(iii))
This bill:
1) Deletes the requirement that homeless assistance be
provided consecutively for up to 16 days and instead
permits homeless assistance be provided to eligible
families for up to a maximum of 16 calendar days in a
lifetime.
2) In cases of domestic violence, deletes the requirement
that homeless assistance is provided no more than twice, in
two periods not to exceed 16 consecutive days and instead
permits homeless assistance be provided to eligible
families for a total of 32 calendar days in a lifetime, if
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certain conditions are met.
3) Requires the California Department of Social Services
(CDSS) implement the new statutory requirements by all
county letter or similar instructions no later than April
1, 2016 and requires CDSS to adopt regulations not later
than July 1, 2017.
FISCAL IMPACT
According to an analysis by the Assembly Appropriations
committee, this bill will incur potentially significant ongoing
costs, in the range of $2 million (GF), for increased housing
benefits. The analysis states that this bill would likely result
in additional benefits paid because recipients who would have
previously forfeited a portion of their benefits by interrupting
the consecutive 16- day period could see their lifetime benefit
increase.
The Appropriations analysis also predicted the general fund cost
may be partially or completely offset by lower benefits paid to
recipients who choose to save a portion of their 16-day benefit
for future use and either do not subsequently use it or no
longer qualify.
Additionally, the Appropriations analysis identified unknown,
likely minor costs to CDSS for automation modifications required
to track this information, and ongoing, likely minor,
state-reimbursable local costs (General Fund) for county
agencies to re-evaluate temporary housing assistance applicants
each time they apply for the benefit.
BACKGROUND AND DISCUSSION
Purpose of the bill:
Current law provides temporary housing assistance to homeless
families receiving aid through the CalWORKs program for up to 16
consecutive nights in a hotel, motel or commercial
establishment. A family is only eligible for this temporary
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assistance once in a lifetime.
The author writes that because the temporary housing assistance
is only available for 16 consecutive days, a break in assistance
inadvertently punishes families who, for one reason or another,
have to vacate their temporary lodgings for even one day. The
author also states that AB 702 will remove the disincentive to
refuse or interrupt temporary housing assistance during the
16-consecutive-day period. It does this by simply removing the
requirement that the 16 days be consecutive.
Homelessness
California has the highest poverty rate in the nation - just
under one-quarter of residents are living at or below the
federal poverty level (FPL). These families earn no more than
$20,090 per year for a family of three. California is home to 20
percent of the nation's homeless population and has the highest
rate of homeless families in the country, according to data from
the 2014 US Housing and Urban Development, which prepares an
annual report to Congress on homelessness.
Nationwide, in January 2014, there were more than 216,000 people
in families experiencing homelessness, including more than
194,000 homeless children and youth. While year-to-year changes
in family homelessness have been uneven since 2010, the number
of homeless adults has declined by 21 percent while the number
of homeless people in families has declined by 11 percent (or
25,690 people).
Effect on children
Homelessness has particularly damaging effects on children.
According to a fact sheet provided by the American Psychological
Association,<1> nearly 1 million homeless children were enrolled
in public schools during the 2009-2010 school year, a 38 percent
increase from the 2006-2007 academic year.
The APA cites a series of adverse effects for children who
experience homelessness including disruptions in schooling and
decreased academic achievement, increased likelihood of grade
repetition, suspension or identification of a learning
disability. Homeless children are twice as likely to experience
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<1> https://www.apa.org/pi/families/poverty.aspx?item=6
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hunger as their non-homeless peers, which has negative effects
on the physical, social, emotional and cognitive development of
children. One-quarter of homeless children have witnessed
violence, 22 percent have been separated from their families,
half of homeless children experience problems with depression
and anxiety and one in five homeless preschoolers have emotional
problems that require professional care.
CalWORKs
One of California's most essential anti-poverty strategies is
the CalWORKs program, which provided cash assistance to
approximately 540,000 families in 2014, including more than 1
million children. Federal funding for CalWORKs comes from the
TANF block grant. A grant to a family of three in a high-cost
California county in 2015 is $704 per month, or approximately 42
percent of the federal poverty level (FPL). In 1989, a similar
grant was worth about 81 percent of FPL, and 55 percent in 1997.
Part of the reason for this decline has been a series of changes
over the past five years including significant grant cuts, the
elimination of a Cost of Living Adjustment, and a major
restructuring of the Welfare to Work activities, requirements
and time limits. Adults in the program have gone from a 60-month
lifetime limit on CalWORKs aid to a 48-month limit, with strict
requirements on work participation to remain in the program
after 24 months.
Temporary Shelter Assistance
In California each month, county CalWORKs offices receive an
average of 4,400 requests for homeless assistance, according to
data compiled by the County Welfare Directors Association (CWDA)
and Housing California. Despite the state's economic recovery,
the number of homeless families who receive CalWORKs benefits
continues to grow substantially: In Los Angeles County, the
CalWORKs caseload has risen by 11 percent since July 2006, but
homelessness among families on the program increased by 188
percent. Homeless CalWORKs parents say the lack of housing makes
it substantially more difficult to find work, as required
through the Welfare to Work portion of the CalWORKs program,
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because they have no address, no place to prepare for work or to
ready their children for school.
The CalWORKs temporary shelter assistance program provides $65
per day towards housing for a family of up to four people, plus
$15 per day for each additional family member to a maximum of
$125 per day for up to 16 consecutive days of shelter in a
lifetime. State law provides an exemption for domestic violence,
a medically verified physical or mental illness, or a fire or
other natural catastrophe.
Housing Support Program
In 2014, the Legislature established a limited Housing Support
Program to permit counties to provide housing and related
support to CalWORKs recipients for whom homelessness or housing
instability was a barrier to employment or child well-being.
Initially, 52 counties applied for grants requesting more than
$52 million in funding, but the grants were limited to 20
counties and the initial allocation of $20 million. The
program's potential to help families find self-sufficiency,
which were highlighted in a joint Senate Human Services and
Budget and Fiscal Review hearing in February, have prompted
additional budget allocations this year. Currently, 3,800
families are participating in the program.
Related legislation:
AB 264 (Maienschein, 2014) was nearly identical to this bill. It
was held in the Senate Appropriations Committee.
AB 1452 (Stone, 2014) would have increased the daily maximum
homeless allowance for a family of four from $65 to $75 per day,
and increased the maximum daily assistance for larger families
from $125 to $135. It was held in the Senate Appropriations
Committee
AB 1808 (Committee on Budget, Chapter 75, Statutes of 2006)
increased the daily homeless allowance from $40 to $65 and added
criteria for eligibility that permitted assistance to avoid
eviction.
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ARGUMENTS IN OPPOSITION
The Department of Finance writes that it opposes this bill
because it would increase General Fund costs by several million
dollars annually. "By repealing the requirement that recipient's
homeless assistance be used consecutively, this bill would also
be expanding CalWORKs services to the extent recipients utilize
additional homeless assistance days that would not otherwise
have been available."
ARGUMENTS IN SUPPORT
The California State Association of Counties disputes the
additional costs and argues this bill would "allow homeless
families to access temporary shelter assistance when they need
it without increasing current costs. Specifically, AB 702 simply
deletes the current requirement that the 16 days of housing
assistance provided to homeless families through the California
Work Opportunity and Responsibility to Kids (CalWORKs) program
be used consecutively. AB 702 will allow counties to better
target the intermittent cycle of homelessness by increasing
flexibility for the receipt of temporary housing assistance - at
no additional cost to the state."
COMMENTS
The need for housing assistance for CalWORKs families is
underscored by the emerging successes stories in the Housing
Support Program (HSP). However, demand for the HSP substantially
exceeds the supply of shelter and is only available in a limited
number of counties. Meanwhile, homelessness among this
population continues to grow.
According to Western Center on Law and Poverty, a co-sponsor of
this bill, "The requirement that the 16 days be consecutive
imposes a hardship on families who must interrupt their 16-day
stay due to out-of-area job opportunities, childcare obligations
or medical-related travel. A family may vacate a hotel or motel
because it is unsuitable for children or they have a temporary
offer to stay with a friend or family member. The requirement
that the 16 days be consecutive also proves a disincentive to
find alternative arrangements, seek prospective employment
opportunities or tend to health or family obligations during
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this time period."
PRIOR VOTES
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|Assembly Floor: |80 - |
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|Assembly Appropriations Committee: |17 - |
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|Assembly Human Services Committee: |7 - |
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POSITIONS
Support:
Western Center on Law and Poverty (Sponsor)
California Alternative Payment Program
California Catholic Conference of Bishops
California State Association of Counties
City of San Jose
Coalition of California Welfare Rights Organizations
Courage Campaign
Hunger Advocacy Network
National Association of Social Workers, California
Chapter
Santa Clara County Board of Supervisors
Oppose:
Department of Finance
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